Core Insights - The article argues that the notion of a peak in electricity demand in 2026 is a misunderstanding, as it overlooks the ongoing and increasing demand driven by AI technologies and their integration into various sectors [1][11]. Group 1: Electricity Demand and AI Integration - The demand for electricity is expected to peak in 2026, but this is seen as a transitional point rather than a definitive peak, as AI's integration into society will continue to drive electricity needs upward [1][11]. - The TDCowen survey indicates that the leasing capacity of large-scale data centers reached approximately 7.4GW in Q3 2025, primarily driven by AI, which signifies a long-term, rigid demand rather than a temporary spike [2][3]. - Bloomberg New Energy Finance predicts that global data center electricity capacity will increase from 81GW in 2024 to 277GW by 2035, indicating a tripling of demand from 2025 to 2035, further supporting the argument against a peak in 2026 [3][8]. Group 2: Technological Advancements and Energy Supply - GEV's recent orders and technological advancements, such as hydrogen combustion technology in gas turbines, are positioned to support the increasing electricity demand from AI applications, emphasizing the need for stable, low-carbon energy sources [5][6]. - The acquisition of Prolec is viewed as a strategic move to enhance capacity and ensure stable electricity supply to underserved regions, thereby extending AI applications into rural and developing areas [6][7]. - The integration of AI in energy management systems is expected to optimize electricity supply and reduce waste, demonstrating a symbiotic relationship between AI and energy production [5][6]. Group 3: Market Dynamics and Future Outlook - The article highlights that the current capital market's perception of a peak in electricity demand is a short-term sentiment that fails to account for the long-term growth trajectory driven by AI and technological advancements [10][11]. - GEV's financial health, with a free cash flow of $730 million in Q3 2025 and nearly $8 billion in cash reserves, indicates a strong position to invest in technologies that will support the ongoing growth in electricity demand [9][10]. - The anticipated growth in AI applications and the corresponding electricity needs will require significant investments in infrastructure, including gas turbines and transformers, to meet the evolving demand landscape [8][9].

Core Viewpoint - The article argues that the notion of a peak in electricity demand in 2026 is a misunderstanding, as the relationship between AI and electricity is one of mutual reinforcement, indicating that electricity demand will continue to grow alongside AI advancements [2][13][15]. Group 1: Electricity Demand and AI - The projected electricity demand for 2026 is not a peak but a transitional point in the evolution of AI and energy transformation, with the real growth in demand driven by AI applications [2][4][15]. - TDCowen's research indicates that the leasing capacity of large-scale data centers reached approximately 7.4GW in Q3 2025, primarily driven by AI, which signifies a long-term rigid demand rather than a peak [3][4]. - Bloomberg New Energy Finance predicts that global data center electricity capacity will increase from 81GW in 2024 to 277GW by 2035, suggesting that if 2026 were a peak, the subsequent growth would be inexplicable [4][9]. Group 2: Technological Advancements - GEV's hydrogen combustion technology is a key component in addressing future electricity demands, providing stable low-carbon power essential for AI operations [6][7]. - The integration of AI in energy systems enhances efficiency, with AI capable of reducing electricity waste in data centers by 15%-20% and optimizing power scheduling [4][10]. - GEV's acquisition of Prolec is not merely a capacity expansion but a strategic move to ensure stable electricity supply to underserved regions, facilitating AI applications in those areas [8][12]. Group 3: Market Dynamics and Future Outlook - GEV's Q3 2025 order data shows a significant increase in orders, indicating that clients are preparing for long-term AI-driven electricity needs rather than anticipating a peak in 2026 [5][12]. - The article emphasizes that the current limitations in electricity supply are not indicative of peak demand but rather a signal for the need for more infrastructure to support AI's growing requirements [10][11]. - The ongoing investment in AI and energy infrastructure, with projected capital expenditures reaching $2.8 trillion, reflects a commitment to overcoming electricity supply constraints rather than preparing for a peak [10][12].